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The following information relates to Leisure Zone Ltd for the year ended 31 December. The Company uses a departmental accounting system which reports monthly accounts
The following information relates to Leisure Zone Ltd for the year ended 31 December. | ||||||
The Company uses a departmental accounting system which reports monthly accounts on its | ||||||
three departments - cinema, restaurants and bowling | ||||||
Cinema | Restaurant | Bowling | ||||
$ ('000) | $ ('000) | $ ('000) | ||||
Inventory as at 1 January | 100 | 120 | 80 | |||
Sales | 2,100 | 3,000 | 1200 | |||
Purchases | 1,050 | 1,200 | 700 | |||
Wages and payroll | 200 | 150 | 130 | |||
Repairs and maintenance | 50 | 40 | 20 | |||
Inventory as at 31 December | 80 | 105 | 65 | |||
Other expenses not directly associated any department | ||||||
Rent | 800 | |||||
Light and heat | 150 | |||||
Insurance | 200 | |||||
Administration and accounting | 80 | |||||
Personnel | 200 | |||||
Head office costs | 120 | |||||
General expenses | 50 | |||||
Depreciation | 10 | |||||
Canteen costs | 20 | |||||
It is company policy to apportion expenses that cannot be attributed to any particular department | ||||||
as follows: | ||||||
Floor area - rent, light and heat and insurance | ||||||
Turnover - general expenses head office costs and depreciation | ||||||
Number of employees - administration and accounting, canteen and personnel | ||||||
The floor area and number of employees are as follows | Cinema | Restaurant | Bowling | |||
Floor area (square meteres) | 5,000 | 6,000 | 4,000 | |||
Number of employees | 20 | 15 | 5 | |||
Required | ||||||
a) Prepare departmental accounts for each department based on the net profit method |
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